Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts

Tuesday, September 11, 2012

9/11 - A Day to Remember



9/11 is upon us again.  This is usually the time when I tell you about where I was when theworld stopped turning on that September day in 2001.  I explain that as a Marine, stationed in North Carolina on that day, I was instantly imbued with a sense of duty that I had never felt to that time and I tried to explain something that really, only those who remember Pearl Harbor could appreciate.  Today, I’m not going to go through all of that.  9/11 serves as a reminder to all of us that our world is a dangerous place but it should also serve as a reminder of what America is and who we are as individuals.  There were no divisions on that wretched day as twisted metal and crumbling concrete rained down upon NYC, D.C. and as heroic passengers gave their own lives in the last full measure of devotion to their fellow man and their nation in Shanksville, PA.  The terrible cost gave way to a glorious outpouring of love and service.  There were no divisions on that day.  Race, color, creed, even nationality were discarded as a means of disunity and all of us pitched in together to rescue those stranded, to provide life giving blood to those who needed and to support the first responders who rushed headlong into the fray.  It’s time to stop focusing on the tragedies, remember them, and honor those who suffered, but focus on who we were in a time of chaos and confusion.  We were Americans! 
Again, we are being tested although this time there is no foreign terror organization to blame and no enemy to combat.  Our nation faces serious financial troubles and as we close in on yet another election, we are left to ask, where do we go from here?  Who are we now?  Today, as Delaware’s Primary elections are taking place in the Republican and Democrat parties and in the wake of two of the most watched political conventions in history, instead of focusing on where we’ve been, I’m going to tackle the question, are we better off than we were four years ago.  I won’t look at things so much nationally, although we will cover some things nationally but I’ll focus mostly right here, in Delaware.

Are you better off than you were 4 years ago?  That question was circulated around the Democratic National Convention and Delaware’s elected officials were chomping at the bit to answer it.  To a man, they all said, “Yes”.  (Chris Coons) (Joe Biden) (Jack Markell) (Tom Carper) But I’m not so sure that they are right.  Let’s look at a few economic factors and decide if we are better off today than four years ago.

Gas prices
Nationwide, when President Obama took office, after the worst collapse since the great depression, the average price per gallon of regular gas was $1.86 but today, a gallon of gas nationally will average about $3.86.  Here in Delaware, when President Obama took office, we were paying $1.75 and today, the average is $3.79 per gallon of regular gas (although I just paid $3.95 at a Shell outside of Wilmington).  So clearly, by any standard, the price of gas has risen by $2 in 4 years. 
How Do We Fix It?
There’s no sense in simply tearing someone down.  We need a plan to fix the problems we face or we’re just complaining and there’s no sense in that.  So how do we tackle high gas prices?  We embrace safe and responsible fracking operations, open up drilling and stop burning our food supply as fuel (ethanol).  Despite claims by unscrupulous and biased documentary filmmakers, the fact is that even the Obama EPA has had to admit that when done properly, fracking poses almost no danger to ground water, reservoirs or other water sources.  American natural gas and shale oil energy potentials are estimated to provide more than 200 years of clean, affordable energy and could cut our imports from the Middle east by as much as $200 billion per year.  Furthermore, while the administration rightly points out that there is more drilling in the private sector taking place today, what they fail to mention is that there is less private land on which to drill as the federal government has sucked up much of our resource rich ground and refuses to allow safe and responsible U.S. oil producers to use it.  They do however, allow Brazil and China, nations who do not possess the ecological sense of duty that Americans do, to drill on our lands.  Finally, ethanol is consistently touted as the green fuel of the future and it’s been so deeply embraced that it’s hard to find a station that doesn’t have E85 blended ethanol as the standard.  Unfortunately, while it may be greener on a one to one basis, the reality is that ethanol reduces fuel economy and therefore it takes more ethanol burning to go the same distance as it would with gasoline without ethanol.  At best, ethanol is a wash in terms of pollution and at worst, it unnecessarily drives up the prices of both fuel and food (ethanol is commonly made from corn, soybeans, sugar cane and switch grass).

Jobs
In 2009, when President Obama and Governor Markell took office, the national unemployment rate was 7.8% and Delaware’s unemployment rate was 6.9%.  Today, after 4 years of their economic policies, the national jobless rate stands at 8.3% while Delaware is at 6.8%.  These are the U-3 numbers which is the rosiest picture.  This doesn’t include ‘discouraged workers…persons who are not in the labor force, want and are available for work, and had looked for a job sometime in the prior 12 months. They are not counted as unemployed because they had not searched for work in the prior 4 weeks, for the specific reason that they believed no jobs were available for them.”  Nor does it include people who have had to take part time jobs who would otherwise be working full time jobs.  Those numbers are found in the U-6 database and they are staggering.  The U-6 number today is 15.3% (12.1% in 2009) and in Delaware it’s 13.3% (10.7% in 2009).  Nearly 30 million Americans and nearly 60,000 Delawareans are unemployed or underemployed.  You’re not being told the truth by our government.  4 years ago, Delaware maintained one of its two auto plants, the promise of thousands of green energy jobs and hope for those who were being laid off.  Today we’re crippled by the failures of Fisker, Blue Water Wind and the corruption of the Bloom Energy deal that saps money from Delmarva customers to pay for unproven and unrealized potential.

How Do We Fix It?
Even the rosiest of pictures shows that the Obama/Markell jobs plans are simply falling flat.  At the very best, they are maintaining unemployment at ridiculously high levels.  Unfortunately for Delaware, while tackling our energy problems will create millions of good paying, private sector jobs in the energy rich states nationwide, it won’t help us much here in Delaware where we have little square footage and not much energy potential.  Delaware needs to rebuild itself and rebrand itself.  Gone are many of the banks and large enterprises who previously helped Delaware be the corporate capital of the world, gone are the auto plants who employed our blue collar workforce and going are companies like Astra Zeneca and DuPont who have for so long sustained us in tough times and in good times.  There has to be a two pronged approach to job creation in order to make sure that it sticks.  First, Delaware needs a shot in the arm to stimulate the markets.  We can accomplish this through slashing investment and capital gains taxes, reducing our corporate taxes and cutting regulations that choke businesses.  Opting Delaware out of the Obamacare legislation, reducing the power of the PSC and repealing RGGI and the RPS will immediately create opportunities for manufacturing and enterprise businesses to return to Delaware.  Next, Delaware needs to be able to sustain jobs over the long term through serious regulatory reform, tax breaks for companies who hire Delaware residents, incentives for rehabilitation of targeted growth areas including the reuse of existing structures and targeted incentives for companies who invest in Delaware’s infrastructure.  This approach will create long term growth in our state and help to revitalize and rebuild struggling communities while ensuring a fair and open playing field for all businesses.

General Economy
The fact is that the loss of jobs, the skyrocketing price of energy and the lack of confidence in our leaders to fix these problems has led a national economy that is growing in drips and drabs at best and at worst is only giving the false appearance of life.  Despite massive spending on stimulus, bailouts for big banks, a practical takeover of the American auto industry and the passage of the Obamacare bill that was supposed to entice businesses into hiring, our nations growth is barely stagnant at less than 2% growth.  The future is not much brighter with tax hikes looming and businesses still unsure of what employee costs will be.  Here in Delaware, Governor Markell has placed a heavy burden on corporations that had long sustained us while making crony deals with political friends and party backers in Fisker and Bloom.  In short, our leaders in Dover have put politics over people and cronyism over job creation.  Like the nation, our growth rate is below 2% and more and more Delaware residents are turning to social welfare services to try and make ends meet.

How Do We Fix It?
The first step in the process of getting out of a hole is to stop digging the hole.  Delaware’s partisan political class, a group of people largely made up of a single party, must be reigned in and held to account for their action and inaction.  We must replace the single party rule in Dover with new faces and fresh ideas.  Throwing money at our problems hasn’t solved them yet and it’s not for a lack of trying.  Our nation is a nation built around the idea of individualism and service to our communities and we must tap the potential of our unbridled talent by unleashing the power of our people.  First, common sense tells us that in a time of fiscal turmoil, raising taxes is a bad idea.  When people are already struggling, pressing more burdens on them is both unfair and harmful to any chance of a recovery.  Instead, we should lower individual income taxes to put more money in the hands of consumers to stimulate the local economies.  While we’re on the subject of tax cuts for Delaware’s working families, we must recognize that without the means to create jobs, tax cuts to the middle class are a temporary benefit at best.  We must also cut our investment taxes and make it easier for those who have the means to invest in Delaware companies to do so.  Much ado has been made about the “rich” paying their “fair share” and I’d be remiss if I didn’t point out that nationally (even with the “Bush tax cuts” in place), the top 10%, who make over $112,000 per year, pay more than 70% of the entire income tax burden and the top 50%, those making more than $32,000 annual account for almost 98% of our national income tax burden. In Delaware, those with an income of $200,000 or more, the folks that we’ve been told “aren’t paying their fair share” account for just 2.6% of all the tax returns in Delaware.  They also account for 29% of Delaware’s portion of the Federal Income Tax and 33% of Delaware’s State Income Tax revenue.  That means that the other 97.4% of Delaware residents combine to cover 67% of the Delaware State Income Tax.  Any rational view of these numbers would lead one to ask, “What is ‘fair’?”  We can turn our future around but it really requires us to do all of the above.  Address our energy needs by supporting low cost, domestic energy sources that can power us into the next century, creating jobs that are sustainable in the private sector and decreasing the financial burden on our citizens to allow them the opportunity to grow and thrive and lead us out of the recession.   

Monday, February 6, 2012

Fisker is the Second Shoe to Drop

A story on Delaware Online today (sorry, I refuse to subscribe to the death of another tree in order to boost News Journal sales so I am not sure if it was actually printed in the paper version) displays the folly of American green energy policy.  Just a month after Blue Water Wind failed and cost us untold millions of dollars and just over a month after Fisker announced that their car faced similar battery problems as the Chevy Volt, the embattled car company, who has pushed back their production dates more than 2 years, has laid off 25 workers and cut contracts with a number of subcontractors.  Fisker has been touted as the next big thing to prove that the government's green energy strategy works.  Yet from it's inception it has needed massive government subsidies and government assistance in the form of sweetheart land deals to stay afloat.  After promising Delaware's largely union autoworkers big payouts if they could just hold on through the retooling of the former GM plant, the company has all but dashed those hopes.  Thousands of Delaware autoworkers who have been home after being laid off by GM and Chrysler and waiting for Fisker to start up now have little hope for a return to automobile manufacturing in Delaware.

On this blog back in September, we talked about Delaware's Solyndra lesson.  We pointed out the problems with Fisker's numbers and we referenced a number of other articles that had similar concerns.  The bottom line, many of us saw this coming but the government ignored us at best and made fun of us at worst.  They called us crazy and yet here you can see the results of government attempting to pick winners and losers.  In the end the taxpayers lose when their money is taken and wasted, the employees lose when they end up out of work and the communities lose when businesses close their doors and the ancillary jobs leave town. 

Mark this date.  In December of 2011, I gave a talk at a meeting of concerned citizens where we covered a range of topics including green energy, fracking and the cost of our government's green waste.  You can see the presentation from that meeting here.  The next green energy disaster to rock Delaware will be Bloom Energy who is relying on Delmarva Power to subsidize its Bloom Boxes by tacking on a $2-$4 charge to each bill.  Government cannot and should not pick winners and losers.  This is yet another reason why we simply MUST put people who understand our markets and the design of our government in the places currently occupied by corrupt officials more interested in cronyism than their constituents. 



Monday, September 26, 2011

Capital One replaces lost HSBC jobs

Governor Jack Markell’s office announced today that Capital One is bringing 500 jobs to Delaware. This comes as Capital One acquires both HSBC’s credit card business and ING Direct. While Markell, DEDO and the Democrat leadership in Delaware is hyping the news, a look at the actual numbers offers a sobering view of reality.

Jobs lost or planned to be lost:
Wilmington Trust (M&T Bank) – 700 jobs lost
HSBC – 500 jobs lost
AIG/MetLife – 150 jobs lost
CIGNA – 500 jobs planned to be lost in Delaware
Bank of America – 30,000 nationwide layoffs, potentially 3,000 in Delaware alone

Mass layoffs by month (these #’s do not reflect smaller layoffs):
Apr 2011 – 8,000 jobs lost
May 2011 – 5,000 jobs lost
Jun 2011 – 6,000 jobs lost
Jul 2011 – 3,000 jobs lost
Total 4 mths – 22,000 jobs lost

http://www.bls.gov/eag/eag.de.htm

In just 4 months we have lost 44 times as many jobs as Capital One plans to add by the end of 2013 (more than 24 months away). Rich Heffron, VP of the Delaware State Chamber of Commerce says we are “ahead” in the jobs race now. Really Rich? Really? With business leaders who add like this, is it a wonder we are so far BEHIND in job creation

http://www.prweb.com/releases/2011/9/prweb8827004.htm - DEDO & Markell release on Capital One jobs

Saturday, March 5, 2011

Job Losses and Toll HIkes: Markell's legacy of pain

Since Jack Markell took office in 2008, following 8 years of the most corrupt administration in Delaware's modern history, Delaware has indeed experienced "change".  Both Governor Markell and President Obama promised a healthy dose of change in their 2008 campaign.  For my money, I'd trade all of the change they gave us for some jobs.

Since Jack Markell took office and named Alan Levin as Secretary of the Delaware Economic Development Office, Delaware has experienced a net loss of 36,000 jobs.  That means that today, there are 36,000 Delawareans who cannot find work.  Meanwhile, as the layoffs keep coming, Markell and Levin do nothing.  Markell just inked a deal with China, the largest foreign holder of U.S. debt, to invest in Delaware bio tech.  In reality, this deal doesn't do squat to create jobs.  It provides Markell with a photo op and a favorable news story which gives the appearance of him actually doing something.  If anything does come of it, Markell has just invited China, America's largest debt holder, to purchase their way into the Delaware economy.  Since Markell took office, Delaware's industrial footprint has died.  Some may think that is by design, and while that might seem outrageous, there certainly has been a real and wholesale loss of blue collar jobs in Delaware's private sector.  I find it difficult to believe that Markell and Levin don't WANT to create jobs but I submit to you that GM and Chrysler (closed in 2008 under the Minner Administration where Markell served as Treasurer) left the state which left thousands of Delaware Autoworkers without jobs, Valero closed and shed nearly 1000 jobs, HSBC and Wilmington Trust cut more than 1200 jobs, DuPont and AstraZeneca have laid off more than 1,000 workers and scores of small businesses around the state have closed.  Even with the purchase of the Chrysler plant by U of D, Fisker moving into the GM Plant and the new owner of the Valero plant moving in, Delaware faces a net loss of 36,000 jobs.  In January alone, Delaware shed 700 jobs and the unemployment percentage stayed flat at 8.5%.  Even the News Journal, not known for displaying the failures of Delaware Democrats, has had to admit that the employment picture in Delaware is not good.  The Markell Administration has consistently talked about the budding Delaware bio tech industry, green energy jobs, healthcare and financial services as being Delaware's economic future yet the only thing materializing in those areas is government spending and job cuts.  Healthcare dropped 600 jobs in January while banks and finance companies have been shedding Delaware jobs by the thousands since the passage of the financial regulatory bill. 

Regulations, especially as they pertain to the environment in Delaware have increased and so has Delaware's spending.  In fact, Delaware's personnel costs and the cost of government services are so high that there isn't an opportunity for the state to commit to creating a pro-business climate.  Markell and the General Assembly have been content to focus on social issues like homosexual equality and gimmicks like Markell's bottle bill rather than to address Delaware's problems with job creation and spending.  In 2011, Delaware faces a $377 million budget shortfall that must be closed by the General Assembly and the Markell Administration.  This is the 3rd straight increase in budget gaps under Markell and his accounting gimmicks and tricks will only work for so long before it becomes undeniable that Delaware has a spending problem.  I only hope that enough of us wake up by 2012 to stop this train before it totally derails.

Speaking of shortfalls, DelDOT (whose budget is a mere 8.5% of the entire Delaware budget...dwarfed by education and health and social services) is facing a shortfalls totalling "$1 Billion over the next 5 years and more than $3.7 Billion through 2023" says Jeff Montgomery of the News Journal.  State Senator Robert Venables from Laurel doesn't think the General Assembly understands the severity of the problems (and he's a Democrat by the way) and outgoing DelDOT head Carolann Wicks says that "We're now down to the core programs, primarily,".  Still, the following excerpt from Jeff's story is chilling:

Filling the budget gap without cutting back on projects would require more than $169 million in new revenue just for the budget year that begins July 1, an amount DelDOT officials said could be raised with $85 million in new taxes or fees and an additional $85 million in borrowing.

By 2023, however, the single-year shortfall could grow to nearly $498 million.

Confining DelDOT spending only to "core" maintenance, safety, operating and vehicle replacement spending would still leave a $125 million gap next year that would rise to a cumulative $545 million by 2016 and nearly $1.4 billion by 2023, officials said.

State officials have blamed a combination of rising costs, growing demand for services, inadequate funding and rising debt-service payments for the trust fund's quandary. Payments on past loans and interest alone now amount to about $123 million a year.
Folks, this is STAGGERING.  Even if we ONLY spent money on core services from DelDOT, we're looking at a $125 million gap in 2012.  That's no new roads, no updates that aren't critical, no new bus routes, etc.  The blame from the state officials goes not on poor planning, excessive borrowing and administration failures but on the INTEREST for the debt they ran up.  Folks, the payments for the past debt alone total $123 million per year.  So next time you hear that Delaware's financial situation is better than the federal government and that we have nothing to worry about, remember that DelDOT...who makes up just 8.5% of the state budget pays out an amount equal to about 1/3 of the FY2012 budget shortfall.

There is an interesting sidebar in Jeff's story:

TOP REVENUE-GENERATING OPTIONS

Impose $1 per barrel fee for crude oil barge transfers in Delaware Bay: $100 million
Raise Del. 1 weekday toll to $2, weekend toll to $3: $36.4 million
Raise all I-95 tolls by $1: $24.5 million
Shift DelDOT operating funds from Trust Fund to General Fund: $14.1 million yearly for 10 years
Eliminate trade-in discount for new vehicle document fee: $12.2 million
Charge toll for new Indian River Inlet bridge: $7.6 million
Hike vehicle registration fee by $10: $6.7 million
Raise Del. 1 commercial vehicle toll by $1: $4.5 million
Increase gas tax by 1 cent: $4.5 million
Shift Paratransit service costs to General Fund: $4.3 million yearly for 10 years 
 

HIGHEST-RANKED TRANSPORTATION TRUST FUND REVENUE OPTIONS

$1 increase in Del. 1 commercial tolls: $4.5 million
10 percent fee on sale of Delaware tags: $15,000
Illegal sign fees: $9,000
Shift Paratransit service costs to General Fund: $4.3 million yearly for 10 years
Double current $25 fee for driver's license suspension reinstatement: $510,000
$10 additional for driver's license permanent renewal: $87,000
Increase revocation reinstatement to $200 from $143: $230,000
Double late registration renewal fee to $20: $831,000
Double over-size vehicle permits to $40: $903,000
Double fee for paratransit trips outside regular transit corridor: $2.1 million
These are the ways that the special planning board that the Markell Administration created has come up with to "fix" the problems.  You'll notice that there are a lot of fee increases and toll charges but no real cuts.  Oh, and you'll see that they recommend shifting costs...which only hides the costs in the General Fund budget instead of spotlighting it like the rest of the transportation spending.

This is how Delaware Democrats deal with our problems.  They bury them.  We saw it with Chris Coons in New Castle County as we are finding out, his accounting gimmicks masked the fact that our County is bankrupt and in danger of becoming insolvent and we've seen it now at the state level.  The only way we're ever going to fix our problems is to make big changes in the way we do things.  Delaware is in trouble.  We've got to cut spending, cut regulations to bring jobs back to the state immediately and reduce the size and scope of government at all levels.  If we don't make some real changes, face some pain today and get our house in order, we're going to face FAR worse pain in the future. 

Saturday, December 4, 2010

Trouble a brewing

Conservative commentator Glenn Beck is often ridiculed by the left for his "conspiracy theories".  Beck has routinely warned about events that people have considered crazy which have in the long run proven true.  The unemployment number rising above 9%, the rising price of gold and the Fed's quantitative easing scheme come to mind.  Recently Glenn has been warning about a "big event" that will threaten the stability of America and possibly the world. 


Isn't it strange that North Korea has been ratcheting up attacks against South Korea in recent days, sending all of Asia into a tail spin?  Meanwhile, China has recently began buying tons of gold.  This is after buying more U.S. debt than any other nation (the Fed is actually the largest holder) and buying up a rather large chunk of the world's natural resources.  China has been quite vocal about the government's accounting tricks and has openly questioned the out of control spending of the Obama administration.  With their region in turmoil and their current position as a financial superpower, China just may be in a position where it can call in the U.S. debt load.  Beck may just have hit yet another nail on the head but only time will tell.  If Washington doesn't right the ship and do it fast, you can bet that China doesn't need to sit around and wait for us anymore.

Raising taxes on the car in the ditch and the gas that's in it

Democrats just can't help themselves.  Delaware Senator Tom Carper proposed a 25% tax on gasoline just one week before the House Democrats passed a bill to stop the Obama tax increases for Americans making less than $250,000.  At the same time, the Senate passed a bill that allows the federal government control over the entire agricultural sector (including your own home gardens).  There is another push to extend unemployment benefits as well.  Let's look at each of these proposals on their merits.

  1. 25 cents per gallon tax on gasoline - This would certainly put more money into the federal coffers which is desperately needed until the government begins to cut spending but Carper wants to put this money into a fund specifically for road construction (to join the National Highway Trust Fund which is bankrupt because Congress has borrowed from it).  The tax would hit consumers at the pump, making gasoline that averages around $2.95 per gallon today, rise to $3.20 per gallon for regular gas.  It would also hit consumers across the board because businesses who transport goods will need to pay the same .25 cent fuel tax on each gallon their trucks consume.  Do you think that they will eat that cost or increase the cost of their products to cover the fuel cost?  That's right, they will pass it on to us.  Every product on every shelf and in every store will see an increase to help cover the costs associated with this tax and that will amount to BILLIONS of dollars in price increases for American citizens at a time when the dollar is already buying less and less.
  2. Obama tax increases on those making more than $250,000 - The Democrats have sold this as class warfare rhetoric by claiming that these increases only affect the top 2% of Americans.  They get away with that because the tax increases would directly hit only the top 2% of wage earners however, it would trickle down to everyone else.  You see, the top 2% of wage earners are also the people who create the jobs in America.  They are small business owners, medium sized business CEO's and hiring managers at Fortune 500 companies.  Ask yourself this, ever gotten a job from a poor man?  The answer is most likely no and this is the reason why it's not smart to raise taxes on ANYONE right now.  When we need jobs as badly as we do now and when many with jobs are looking to salary increases to stave off the effects of inflation, it's even less understandable that the Democrats would fight so hard to stick it to the people who create the jobs.
  3. Food Safety Act of 2010 - Progressives always come up with innocent sounding names for their bills in order to conceal the goal of the legislation.  This is one of the times where the name of the bill obscures the true intent.  Allegedly brought on by the recent egg scare, this bill builds on something that started in the 1930's with the Agricultural Adjustment Act.  The AAA allowed the government to control planting habits in many of America's staple crops by subsidizing farmers who let their fields lie dormant in order to artificially adjust pricing for certain crops (think corn, grain and cotton) and influence which types of crops are grown in each region.  Later the progressives would introduce genetically engineered seeds that produced higher yields and larger products than the original "heirloom" seeds but the problem with the genetically engineered seeds is that they are only good for a single season because they are sterile.  Heirloom seeds, the original seeds work in the traditional fashion where pollination can occur and seeds can be planted once and grown for many seasons thereafter.  Sterilizing the seeds serves a single purpose, it keeps farmers coming back every year for more seeds.  Now Congress has introduced a bill that allows them to control livestock, tomatoes, cucumbers, you name it, they can now determine where you can grow it, how you can grow it, when you can grow it and what you can do with it afterwards.  There is even a provision (put on hold by a last minute amendment) that controls home gardens.  It does almost nothing to increase safety unless you trust the government with every aspect of your life.
  4. Unemployment benefit extension - Unemployment benefits are both a great safety net and a terrible tool of control.  They allow immediate relief for people who are laid off abruptly through no fault of their own and provide the necessary minimum (sometimes less than the minimum) required to sustain them until they are able to find work again.  The problem is that Congress has raised unemployment benefits so much and extended them for so long that there is a segment of the population that has become accustomed to living on these benefits and who no longer feel the need to seek gainful employment.  As one talk show host said, "If the government will pay you $300 per week to stay in a home paid for by someone else and do nothing, why go out and find work?"  Yet, unemployment benefits are crucial at this time with so many people out of work and so there must be a discussion about extending them at least until the job market improves so the conservatives have suggested that the Democrats use unspent TARP or stimulus funds to pay for their new spending on unemployment benefit extensions.  The Democrats have refused to do that and instead want to add more than $12 Billion to the federal deficit (which is now over $14 Trillion) in the most fiscally irresponsible move imaginable.  In fact, Democrats have said that increasing spending in one are and decreasing it in another doesn't make sense.  Conservatives say that the 2010 elections show that Americans want a more responsible management of funds and that using unspent TARP or Stimulus funds is the most responsible way to pay for these extensions.  They call it balancing the federal budget.
The current culture of spend, spend and spend some more has not changed with the wake up call sent to Washington on November 2nd.  We can only hope that the new Congress in January makes the changes we all want, needs and desire.

Friday, December 3, 2010

Unemployment Hits 9.8%

The Wall Street Journal reported tonight that unexpectedly low jobs numbers drove the unemployment rate up to nearly 10% and betrayed the idea that the economy is recovering at least at the speed with which the Obama administration suggests.  Employers added just 39,000 jobs in November which was a deep drop from October's numbers.  It's unlikely that the economy will make any miraculous recoveries anytime soon.  Most forecasters are suggesting that at best, the unemployment rate will shrink to 8.5% by the end of 2012.  The Obama administration has increased the national debt by more than $3 Trillion and has spent money on stimulus and bailouts like crazy hoping for better results than this.  Had they cut spending instead of increasing it, gotten out of the way of the free market instead of buying into it and reduced the tax burdens on job creators there is plenty of evidence to suggest the numbers would be far better.

These numbers are not what the American people had in mind in 2008 when they voted for "change" and they certainly are not what the people had in mind last month when a wave swept the Democrats out of control of the House and crippled their filibuster proof majority in the Senate.  If the numbers continue to stay this high, it's difficult to see how Obama and the Democrats will be able to overcome the push of conservative fiscal policy when the new Congress takes office in January.